An HD display is always capable of showing more resolution than ED.
That doesn't mean that your colors will be better on the HD display or that you actually care enough to dish out the extra cash for 40% more pixels on your screen, it just means that you get more pixels for your money.
Now, really, you have to look at what HDTV REALLY means as opposed to what people call it in stores. I have not been in the A/V business for a really long time, but I did learn what the definition of HD is and it often surprises people that know a lot more than I do when they find out.
NTSC is the standard that every american television has supported for years. Basically it includes 480i programming.
ATSC is the new stuff and it includes what people call HDTV, but is not necesarily HDTV. It includes 480i, 480p, 720p, and 1080i (as well as a couple others I can't think of off the top of my head).
Now, 480p is what the industry has dubbed EDTV. Any display that has 480 fixed pixels of resolution gets called that and typically will cost you a lot less than a display with 720 or 768 lines of resolution. But, the kicker is that your EDTV display will handle the 1080i signals and 720p signals coming into it and make them look darn good. Some EDTVs definitely are hard to tell apart from some of the cheaper higher resolution models.
A good example of what I am talking about is when you view a DVD on your television vs. watching regular cable. The TV really can't show more resolution because you are watching a DVD, but because the original source is so much nicer looking, you end up with that much nicer of an image on your regular TV.
If you budget only affords EDTV, then go with EDTV. I went with a 1366x768 plasma but I got it for a steal. Yet, I think I may get a EDTV model for my bedroom.